Enterprise Finance Guarantee Loans

Let’s Do Business Finance is one of 40 lenders, from high-street banks to local lenders , accredited by the British Business Bank to lend to small businesses with the backing of Enterprise Finance Guarantee.

Since its launch in 2009, the British Business Bank’s Enterprise Finance Guarantee (EFG) has supported the provision of £2.7bn of finance to more than 26,000 smaller businesses in the UK. EFG facilitates lending to smaller businesses that are viable but unable to obtain finance from their lender due to having insufficient security to meet the lender’s normal security requirements.

In this situation, EFG provides the lender with a government-backed 75% guarantee against the outstanding facility balance, potentially enabling a ‘no’ credit decision from a lender to become a ‘yes’.

To be eligible for support via EFG, the small business must:

Be UK based, with turnover of no more than £41 million per annum

Operate within an eligible industrial sector (a small number of industrial sectors are not eligible for support)

Have a sound borrowing proposal and robust business plan, but inadequate security to meet a lender’s normal requirements

Be able to confirm that they have not received other public support of state aid beyond euro 200,000 equivalent over the previous three years

It’s simple to apply and takes no longer than our standard loan application.

Decision-making on eligibility is fully delegated to us, so if we can offer finance on our normal commercial terms without the need to make use of EFG we will, but where a small business has a sound borrowing proposal but no, or inadequate security, we will consider support via EFG.

Let’s Do Business Finance will use EFG guarantees on loans to fund the future growth or expansion of a business, from £3,000 to £50,000. Finance terms are from three months up to 7 years.